Lesson Learned #163: Failed to save Auditing settings for server: xxx .Principal xxx does not exist

I have been working on a support ticket were customer was getting the following error trying to save Auditing settings.

“Failed to save Auditing settings for server: xxx .Principal xxx does not exist in the directory xxx”. 

During auditing configuration , customer had selected, an storage account that was being used by other Azure SQL server to save their auditing logs.

We confirmed that storage account was configured with firewall enabled

The problem came because,  identity assignment  was not getting saved correctly.

Executing the following query we could see that identity was not getting saved

select * from sys.database_scoped_credentials

The solution was reassign the Identity and resave auditing executing the following PowerShell command

Set-AzSqlServer -ResourceGroupName <NameofTheRG> -ServerName  <NameOFTheServer> -AssignIdentity

$server = Get-AzSqlServer -ResourceGroupName rgname -ServerName server
$objectid = $server.Identity.PrincipalId
Set-AzKeyVaultAccessPolicy -VaultName vault -ObjectId $objectid -PermissionsToKeys get, wrapKey, unwrapKey

Enjoy!